India’s Higher Education system is the largest in the world in terms of number of institutions. Higher education in India has undergone rapid development after post-independence era. Every society gives importance to education because it is a panacea for all evils. It is the key to solve the various problems of life. Education has been described as a process of waking up to life also. This article attempts to examine the scenario of higher education in India. Besides the university departments of education and their affiliated colleges, government and government aided institutions; private and self-financing colleges and open universities are also engaged in education. Although there have been challenges to higher education in the past, these most recent calls for reform may provoke a fundamental change in higher education. These disparate literatures have not been tied together in a way that would examine the impact of fundamental change from the policy level to the institutional level and to the everyday lives of college and university administrators, faculty and students. Now the time has come to create a second wave of institution building and of excellence in the fields of education, research and capability building. We need higher educated people who are skilled and who can drive our economy forward. 
 This paper discussed the issues of higher education and direction to improve the higher education in India.
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